Huasheng International Announces Placing of New Shares and Strategic Investment in Hainan Project
Key Points for Investors
- Placing of New Shares to Raise Up to HK\$19.19 Million
- Funds to Support Strategic Entry into Sanya Yucai Eco-district Concrete Plant Project
- Potential to Significantly Expand Revenue Base and Market Presence in Hainan
- Impact on Shareholding Structure and Dilution Explained
- Risks and Conditions for Completion Highlighted
Detailed Announcement
Huasheng International Holding Limited (Stock Code: 1323) has entered into a conditional agreement with KGI Asia Limited for the placing of up to 151,120,000 new shares at a price of HK\$0.127 per share, representing approximately 20% of the existing issued share capital. The placing is to be conducted under the Company’s general mandate, which has not yet been utilized and thus requires no further shareholder approval.
The placing is expected to generate gross proceeds of approximately HK\$19.19 million and net proceeds of about HK\$18.49 million after deducting related fees and expenses. The net placing price per share is estimated at HK\$0.122.
Terms and Conditions of the Placing
- The Placing Agent, KGI Asia Limited, will receive a commission of 0.8% on the actual placement amount.
- Shares will be placed to not fewer than six independent placees, with none expected to become a substantial shareholder.
- The placing price represents a discount of 5.93% to the closing price on the agreement date (HK\$0.135), and a 2.76% discount to the five-day average price (HK\$0.1306).
- The new shares will rank pari passu with existing shares on the date of allotment.
- Placing completion is subject to several conditions, including Stock Exchange approval for listing the new shares and the absence of any material adverse events or breaches of warranties by the Company.
- The Placing Agent may terminate the agreement under certain adverse market or company-specific circumstances, such as force majeure, changes in law, or material litigation.
Strategic Use of Proceeds: Major New Project in Sanya, Hainan
The net proceeds are earmarked for investment in a joint venture with Sanya Yucai Ecological Investment Development Company Limited, a state-owned enterprise, to develop a ready-mixed commercial concrete mixing plant in the Yucai Eco-district, Sanya, Hainan Province, PRC. Huasheng’s indirect wholly-owned subsidiary, Hainan Huasheng, will contribute at least RMB20 million (approx. HK\$23.2 million) to the Project Company.
The project will involve the construction of a concrete mixing plant, storage, and laboratory facilities, with a planned production capacity of 2 million cubic metres per year. Construction is targeted to begin in late 2026. The cooperation agreement with Sanya Yucai is being finalized, with further announcements to come when signed.
This move is highly strategic as Sanya is planning to expand its annual ready-mixed concrete production capacity to 21.2 million cubic metres by 2030, driven by major infrastructure projects such as the Sanya new airport and the G98 Island Ring Expressway expansion. Current shortfall in production capacity and rising demand, especially with Hainan’s Free Trade Port development, positions Huasheng to capture significant market opportunities.
Potential Impact on Shareholding Structure
- Current issued shares: 755,654,743
- Post-placing issued shares: 906,774,743
- Capital Wealth Global Limited’s holding will decrease from 21.18% to 17.65%
- Public float, excluding new placees, will reduce from 78.82% to 65.68%
- New placees will collectively hold 16.67% immediately post-placing
Why This Matters for Shareholders
- This is the first equity fundraising in the past 12 months; the general mandate remains unutilized prior to this announcement.
- The capital raised will not only strengthen the balance sheet but also support a high-potential project that may bring sustainable revenue and profit growth, if execution is successful.
- The new project aligns with government industrial policy for green, large-scale, environmentally friendly plants, putting Huasheng in a favourable position for future industry developments in Sanya and Hainan.
- There is a risk of share dilution and possible price pressure due to the discount-priced placing, but strategic use of proceeds may offset this in the medium to long term.
- Completion of the placing is subject to conditions and may not proceed if adverse events occur before completion.
Conclusion
The proposed placing and investment represent significant corporate actions that could reshape Huasheng International’s growth trajectory and competitive positioning in a rapidly developing region. Investors should monitor developments around the Sanya project and the finalization of the cooperation agreement, as these are likely to be catalysts for future share price movements.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. The placing is subject to completion risks and no assurance can be given that the proposed project or placing will proceed as outlined above.
【廣東話版本】
華盛國際公布配售新股及海南三亞生態區重大戰略投資計劃
投資者重點關注
- 配售新股集資最高1,919萬港元
- 資金用於海南三亞生態區混凝土廠項目
- 有望顯著擴大收入基礎及在海南市場影響力
- 詳細說明股權結構變化及攤薄效應
- 強調完成條件及相關風險
詳盡公告內容
華盛國際控股有限公司（股份代號：1323）已與KGI Asia Limited簽訂有條件協議，配售最多1.5112億股新股，每股配售價0.127港元，佔現有已發行股份約20%。配售將根據尚未動用的一般授權進行，無需進一步股東批准。
是次配售預計可籌得約1,919萬港元（扣除相關費用及開支後，淨額約1,849萬港元），每股新股的淨配售價約0.122港元。
配售條款及條件
- KGI Asia Limited作為配售代理，將收取0.8%配售金額作佣金。
- 新股將配售予最少六名獨立投資者，預計無人會成為主要股東。
- 配售價較協議日收市價（0.135港元）折讓5.93%，較前五日平均價（0.1306港元）折讓2.76%。
- 新股將與現有股份享有同等權利。
- 配售完成須獲聯交所批準上市，及公司未有重大違約或不利事件發生等條件。
- 如遇重大市況變化、法律變動、重大訴訟或天災等，配售代理可終止協議。
戰略用途：進軍海南三亞生態區混凝土項目
集資所得將用於與三亞市育才生態投資發展有限公司（國企）合資發展三亞育才生態區預拌混凝土攪拌廠，華盛全資子公司海南華盛將投入不少於2,000萬元人民幣（約2,320萬港元）作為項目公司資本。
項目包括建設混凝土攪拌廠、倉儲及實驗設施，規劃年產能達200萬立方米，預計2026年底動工。目前正敲定合作協議，簽訂後將再公告。
三亞市規劃至2030年年產能提升至2,120萬立方米，受惠於新機場及環島高速等重大項目，預拌混凝土需求持續增長。華盛進入該區，有望把握龐大市場機會。
對股權結構的潛在影響
- 現時已發行股份：7.5565億股
- 配售後已發行股份：約9.0677億股
- Capital Wealth Global Limited持股由21.18%降至17.65%
- 其他公眾持股由78.82%降至65.68%
- 新配售投資者合共持有16.67%
股東需注意事項
- 過去12個月未有其他集資活動，一般授權首次動用。
- 集資將加強財務實力，支持具潛力項目，若執行順利，或帶來可持續收入及盈利增長。
- 項目符合三亞市推動綠色產業政策，華盛有機會成為行業領先者。
- 新股折讓配售或引致短期股價壓力及攤薄，但中長線如項目成功，或能帶動股價上升。
- 配售完成有條件限制，如未能滿足，交易可能不會進行。
總結
是次配售及戰略投資屬公司重要發展，或改變未來增長動力。投資者應密切留意三亞項目及合作協議進展，因有機會成為股價催化劑。
免責聲明
本報導只供參考，並不構成任何投資建議。投資者應自行查證及諮詢專業意見，配售及項目存在風險，未必如公告所述順利完成。
